Many US Consumers are blissfully unaware how much they are paying in interest on credit card debt.
According to U.S. News & World Report in its most recent survey, consumers are unaware of the damaging impact credit card debt has on their finances. They found consumers who are in debt on credit cards, a staggering 24% owe $10,001 or more.
The survey also found that 30% were unaware of how much interest they were paying.
27% carry a balance on 2 credit cards and 12% of respondents were carrying credit card debt on five or more cards.
According to Beverly Harzog, best-selling author, credit card expert and consumer finance analyst at U.S. News. "Luckily, there are tricks like balance transfers that allow consumers to pay off their debt while paying zero interest for a year or more. If you qualify, a balance transfer credit card can save you money and help you get back on track financially."
Here are some additional findings from the U.S. News & World Report survey:
1) A tale of two extremes: Consumers have either little or extreme amounts of credit card debt. Sixty percent of consumers do not have any credit card debt. Of those who do, 25% reported revolving credit card debt ranging from $1 to $2,000, while 24% reported more than $10,001 in credit card debt. What's more, 13% say credit card debt causes them to struggle to make ends meet, and 15% say their debt regularly limits their spending.
2) People think they can easily manage multiple cards. Forty-nine percent of consumers do not find it difficult to manage multiple monthly payments. Only about 14% say it's moderately or very difficult.
3) Generally, consumers haven't taken advantage of balance transfers. Almost half of respondents surveyed (48%) said they have never used a balance transfer offer. But 17% saved money on interest payments, and 12% paid off their balance before the offer ended.
4) Consumers are naive when it comes to potential fees. Almost half of respondents (45%) didn't know whether their credit card charged a balance transfer fee.
U.S. News conducted the Balance Transfer Survey through Google Surveys. From May 15 to 18, the survey asked 10 questions related to credit card debt and balance transfers and sampled 1,001 people in the general American population who visit desktop and mobile sites where Google conducts surveys.